Fundamental Overview:
USD/CHF--to consolidate with a bullish bias after hitting a one-year high 0.9359 this morning. Supported by the positive dollar sentiment as 6.4% rise in Conference Board U.S. employment trends index to 121.29 in August; more-than-expected $26.01 billion increase in U.S. July consumer credit (versus forecast +$17.5 billion), higher U.S. Treasury yields (10-year at 2.471% versus 2.460% late Friday, contagion from weak EUR on CHF and rise in Switzerland jobless rate to 3.0% in August from 2.9% in July; dovish Swiss National Bank's monetary policy. But USD/CHF gains are tempered by the franc demand on buoyant CHF/JPY cross amid the weak yen sentiment and higher-than-expected 0.1% on-year rise in August CPI (versus forecast +0.0%).
Technical Comments:
The daily chart is positive-biased as MACD is bullish, stochastics stays elevated at overbought zone, 5 and 15-day moving averages are advancing.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.9380 and the second target at 0.9430. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9290. A break of this target would push the pair further downwards and one may expect the second target at 0.9250. The pivot point is at 0.9330.
Resistance levels:
0.9380
0.9430
0.9465
Support levels:
0.9290
0.9250
0.9210
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